10 Stocks Bear the Brunt of Trade Threats

2. KKR & Co. Inc. (NYSE:KKR)

KKR & Co. dropped its share prices by 9.19 percent on Tuesday to end at $120.78 apiece as investor sentiment turned cautious over the company’s planned $1.5-billion mandatory convertible preferred stock offering.

In a statement, KKR said it has commenced offering 30 million of its Series D Mandatory Convertible Preferred Stock with a par value of $0.01 per share.

The company said it intends to use the net proceeds for the acquisition of additional equity interests in core private equity portfolio companies reported in its Strategic Holdings segment and for other general corporate purposes.

In usual cases, the offering of mandatory convertible preferred stock can result in the dilution of existing shares as the conversion would increase the total number of outstanding shares, thereby disappointing investors.